So you want to buy a foreclosure and would like some extra cash to do it? The Georgia Dream NSP (Neighborhood Stabilization Program) was created to encourage the purchase of foreclosed properties. The funds are from an allocation of federal dollars received by the Department of Community Affairs from the Housing and Economic Recovery Act of 2008.
The program provides $14,000 to eligible borrowers purchasing foreclosed properties in eligible areas. Funds are in the form of a second mortgage lien with no interest and no monthly payments, also known as a soft second. The lien is released over a period of five years and six months. That means if you stay in that house for 5 and a half years, you don't pay it back. Funds may be used for required repairs and/or down payment assistance.
This program began April 1, 2009 and all funds must be used by June 30, 2010. If you are a first time home buyer, get the most for your money and purchase before December 1, 2009 for an additional $8,000 tax credit.
How to Apply:
All buyers must receive eight hours of in-person home buyer education/counseling provided by a HUD-approved housing counseling agency. Courses are not available on-line.
Contact a Georgia Dream participating lender for pre-qualification and to begin the mortgage loan process. Yes, good credit is still important here. Call me for a recommendation on a participating lender.
Can I buy a home anywhere in Georgia?
No. You must purchase a foreclosed property in an area of greatest need which means an area that has a large inventory of foreclosures. Counties in metro Atlanta are included in this. For counties outside metro Atlanta please click here.
Are there income limits?
Yes. For the counties of Dekalb, Cobb, Fulton and Gwinnett the income limits are as follows:
- Household of 1 $59,800
- Household of 2 $68,350
- Household of 3 $76,900
- Household of 4 $85,450
- Household of 5 $92,300
- Household of 6 $99,100
- Household of 7 $105,950
- Household of 8 $112,800
For all other counties, please check www.dcaloans.com.
Are only first time home buyers eligible for the Georgia Dream NSP program?
Applicants do not have to be first-time home buyers and can own other real estate. However, the applicant must owner occupy the NSP financed property as his or her primary residence within 60 days of closing. Any rental income generated from the ownership of other real estate would have to be counted as household income for NSP qualification purposes.
If I am a first time home buyer and I use the Georgia Dream NSP do I still qualify for the federal first time home buyer $8000 tax credit?
Yes, if you purchase a home prior to December 1, 2009.
Can I use other down payment assistance with this program?
No, unlike the traditional Georgia Dream down payment programs, the Georgia Dream NSP cannot be combined with other down payment assistance programs.
What's next? Contact a local Realtor, like me who knows these programs. If you are already working with an agent, ask them for the details. Full time educated Realtors should know about these programs. If not, contact me to be your Buyers Agent and walk you through the home buying process. Jen Bowman, Broker Associate and Realtor with Success Realty 404-456-5024.
Info on $8000 Federal Tax Credit
Info on Dekalb County Down Payment Assistance
Info on Georgia Dream Down Payment Assistance
Read more of the Georgia Real Estate Voice.
Jen it is more programs like this that will finally help us to get out of this housing slump.
Jen,
The Georgia program is almost too unbelievable. Folks should be jumping all over it. TN has a fairly good stimulus second, but the GA program is strong.
Good info.
Richard
yes, too good to be true. apparently my realtor believes this caused some of her clients to not get their offers accepted. Is listing GA Dream NSP a negative dpa to list on an offer? Not getting clear answers right now? does anyone have any clear answers?
Terry, when your agent submits an offer for you, they must use the NSP - Notice to Seller for the Acquisition of Property with Federal Funds form. The buyer signs it and it becomes part of the offer. On the form it states that the price of the home must be at a 15% discount from the current appraised value. Many of the foreclosures I am seeing are getting multiple offers and the sellers/banks don't need to sell them at a discount when they have a choice of buyers that are paying above the list price. I think the reason offers are not getting accepted is not saying that someone is using DPA, but that there are so many buyers bidding on the same homes.
Hello Jen,
I am wanting to know when is your next avaliable class for NSP for first time home buyers during the month of March 2010 I am wanting to close hopefully by March 26, 2010 if possible.
Hi Gregory, Here is the link for the homebuyer education providers. If you are already under contract and trying to take advantage of the NSP program it could be tough. A form was to be submitted with your offer in order to use NSP funds. Best wishes to you!